Home seekers in La Plata County and surrounding communities may be closer to homeownership with the help of a $700,000 grant recently secured by the
The fund comes from the U.S. Treasury’s Community Development Financial Institution and will help La Plata Homes Fund move families who can’t afford the market price into homeownership.
“This is one of our largest grants, and it’s extremely competitive,” said Karen Iverson, executive director of the La Plata Homes Fund.
The organization facilitates homeownership through a loan-assistance program. Depending on the individual’s financial standing, the organization might work with people for years before they’re ready to get a house under contract.
The program also offers a pre-purchase education program.
Those who enroll do not make interest payments, but pay back the principle and share appreciation with La Plata Homes Fund when they sell or refinance their homes.
Since 2008, La Plata Homes Fund has helped create 468 homeowners and provided more than $4.8 million in financial aid. It has received Community Development Financial Institution funding since 2009.
“The CDFI grant supports our entire homebuyer assistance program through which we are able to have 200 people go through the program every year,” Iverson said. “Eighty families receive individualized counseling, and it provides 30 to 40 families financial assistance to purchase a house.”
The $700,000 will be collected over three years.
The federal fund awarded a total of $170 million this year for 158 local financial institutions in the U.S. La Plata County and the Denver-based Colorado Enterprise Fund were the only two recipients in Colorado.
